Mengniu Products Back on Hong Kong's Shelves


China Mengniu Dairy Company Limited (the "Company") and its subsidiaries ("Mengniu" or the "Group") (Stock Code: 2319), a leading dairy product manufacturer in mainland China, announced the commencement of the distribution of its dairy products in Hong Kong. Sales points include Kai Bo Food Supermarket, China Resources Vanguard Shop, etc.

Two of its conventional products, pure milk and low-fat high-calcium milk, are to be available at this stage to suit the health-conscious diet of Hong Kong citizens. These dairy products account for over 60% of the local UHT milk and dairy product market. Mengniu's pure milk is rich in flavour and its low-fat high-calcium milk is an ideal choice for beauty devotees and the elderly.

The products are being delivered from Inner Mongolia to Hong Kong gradually and have been put on shelves at more than 80 stores in the Kai Bo Food Supermarket chain. The products will also be put on shelves at more than 90 stores through China Resources Vanguard Shop within the month, making a total of more than 170 sales points. Park'N Shop, retail stores and pharmacies will be included within the distribution network subsequently, boosting the number of sales points to more than 400. In Macau, Mengniu products are expected to be available for sale within two weeks.

Hong Kong has stringent requirements on quality and safety supervision of dairy products. Those Mengniu products to be sold in Hong Kong have passed the heat preservation test, the inspection of InnerMongolia Entry-Exit Inspection and Quarantine Bureau, and have obtained a quality certificate and hygiene certificate from the responsible authority in the Mainland. After arrival to Hong Kong, the products have to undergo a number of inspections conducted by the Food and Environmental Hygiene Department of the HKSAR and SGS Hong Kong Limited for assuring quality and safety of the products.

In recent years, Mengniu has focused on constructing ranches and managing production to enhance product quality in every stage of production, with the aim to serve consumers and build strong market awareness in the Mainland China market. According to the statistics of the China Industrial Information Issuing Centre under China's National Bureau of Statistics, Mengniu's dairy products ranked first, in terms of both sales volume and sales value, among similar products in China for five consecutive years. The Group recorded an annual turnover of RMB30 billion in 2010, and its products have become among the preferred dairy choices of Mainland residents.

Hong Kong is viewed as a global key consumer market. As such, many large overseas and Mainland brands have been introduced to Hong Kong. Mengniu products had previously gained strong support from consumers, thus Hong Kong consumers are familiar with its products. In the past, Mengniu won recognition as one of "Hong Kong Top Ten Supermarket Favorite Brands" and "The Best Performing New Product in Hong Kong Supermarkets". After being named as one of the "Top 500 Asian Brands" in 2006, Mengniu has been ranked 16th among the global dairy enterprises compiled by Rabobank in 2010, demonstrating that the Group's internationalisation strategy has made good progress.

Mr. Yang Wenjun, Chief Executive Officer of Mengniu, said, "We are pleased that Mengniu products have passed many strict approvals and have underwent stringent quality examinations before being sold in Hong Kong. Looking ahead, we will continue to launch market-leading high-end products to create a healthy diet and life style for consumers. We will also expand our sales channels to extend our product reach to overseas markets and promote the MENGNIU brand around the world."

About China Mengniu Dairy Company Limited

China Mengniu Dairy Company Limited and its subsidiaries manufacture and distribute quality dairy products in China. It is one of the leading dairy product manufacturers in mainland China, with MENGNIU as its core brand. The Group's diversified products range includes liquid milk products, such as UHT milk, milk beverages and yogurt, ice cream and other dairy products such as milk powder. In June 2011, the Group's annual production capacity reached 6.76 million tons.

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